Environmental regulations are laws, imposed by the federal or local government, to mediate between natural systems and human systems, often with the intent to improve and preserve ecosystems and safeguard human health. Environmental regulations influence the supply and control the uses of developable land by restricting land use, regulating sources of pollution, and setting aside land for the protection of vulnerable ecosystems and species. Environmental laws also provide pathways for citizens to participate in decisions that affect their community through public comments, public hearings, and citizen lawsuits. Regulatory processes and requirements imposed by environmental laws can increase the cost of building and reduce the supply of available housing, thus increasing housing prices. 

Housing Affordability

Environmental laws that impact housing supply and affordability include:

• National Environmental Policy Act (NEPA). NEPA requires federal agencies to conduct and consider environmental impact assessments for any government project. Environmental impact assessments determine the likely impacts of a project on the environment.
• California Environmental Quality Act (CEQA). CEQA requires California state and local agencies to conduct and consider environmental impact assessments for any project, both public and private, that involves a government agency. Additionally, agencies and developers must try to limit or avoid environmental impacts as much as possible. While CEQA only applies to California, 15 other states also have laws that require environmental impact assessments at the local level.
• Endangered Species Act (ESA): The ESA requires that the actions of federal agencies, including development projects, do not threaten listed endangered species or their designated critical habitat.
• Clean Air Act. The Clean Air Act regulates all sources of air pollution, including construction equipment, construction sites, and land conversions that may create new sources of pollution.
• Clean Water Act. The Clean Water Act sets water quality standards and implements pollution control measures. It also requires that facilities obtain a permit to discharge pollutants into navigable waters.

Environmental regulations pose challenges to tackling housing affordability and insecurity issues. Housing affordability is determined in part by the cost of housing, which incorporates building costs, financing costs, operating costs, and supply of housing. Environmental regulations largely impact the building, operating, and supply components. Building costs vary with the availability of land and the ease of development. Laws such as wetlands regulations can limit the land available for development. Furthermore, construction creates pollutants that must be mitigated, creating additional building costs. Environmental regulations often impose restrictions on water usage, waste management, and energy use, increasing utilities fees and operation costs. Low-income housing is disproportionately affected because homes tend to be older and less efficient, and there is little money to spend on repairing or replacing inefficient systems. Additionally, environmental laws allow citizens to sue government agencies if they believe a law has not been adequately enforced, but the threat of these lawsuits can discourage developers from proposing new projects. If lawsuits do occur, they can delay construction, create additional costs, and sometimes stop projects altogether. Finally, environmental regulations more frequently apply to federal agencies than private organizations or companies. While most public housing projects are subject to environmental regulations, private projects that do not involve federal funding, work, or permits are usually unaffected. Thus, environmental regulations might create an additional challenge for public housing projects.

Arguments for Strict Environmental Regulations

Individuals who advocate for strict environmental regulations argue that strong environmental regulations protect people, especially low-income communities and people of color, from environmental burdens caused by development projects. Environmental regulations ensure that developers’ and businesses’ actions are environmentally and socially conscious since the most cost-effective and convenient actions often involve environmental externalities. Additionally, locally unwanted land uses such as landfills, oil wells, and manufacturing facilities are disproportionately sited in low-income communities of color. Environmental laws require agencies to invite public comments on environmental impact statements, giving communities input into the location of these projects. They also allow citizens to file lawsuits against an agency if they fail to uphold the law, providing the public with an important legal tool to combat pollution and environmental burdens in their neighborhoods. 

Some researchers and studies indicate the impact of environmental regulation as a barrier to development is overstated. Compared to the number of projects subject to environmental regulations, relatively few are litigated. In some cases, environmental assessments can save money by discouraging impractical projects or revealing environmental issues that can be solved before construction begins. Strict regulations also encourage companies to develop and improve sustainable technologies, making those technologies more accessible and less expensive.

Arguments for Streamlined Environmental Regulations

Others argue that environmental regulations should be streamlined to reduce the cost and timeline of development projects. Environmental impact reports, which are often required by environmental regulations, increase the time, cost, and uncertainty of getting a construction project approved. Additionally, land-use restrictions, pollution screening and mitigation, and utility fees imposed by environmental laws increase the building and carrying costs of housing. The threat of litigation over environmental concerns can deter developers from starting housing projects, and if a developer is sued they will likely face extensive project delays, expensive litigation costs, and environmental review fees. Since any member of the public can file a citizen suit to enforce environmental laws, locals have abused this tool to prevent unpopular development projects, including affordable housing, from being built in their communities. Environmental regulations do not often consider socioeconomic inequality, and this can disproportionately affect housing affordability for low-income communities. Regulations and environmental policies encourage developers or landlords to upgrade energy systems, install new windows, or update appliances to be more energy efficient. However, this increases home values and puts those units out of reach of low-income tenants.

Questions to Consider:

Many factors contribute to this debate, including the need for healthy communities, environmental justice, affordable housing, a greater supply of housing, and protections for ecosystems and species. 

• Should exceptions to environmental regulations be made to increase the viability of affordable housing projects? 
• Can environmental laws be simplified to reduce housing insecurity and improve the quality of life for low-income individuals without jeopardizing the health of disadvantaged communities? 
• Finally, should we sacrifice environmental protections to streamline development, or can other measures be equally, or more effective in improving the housing crisis?